Starker Exchanges: Follow The Rules
When you sell real estate which you are renting, (called "investment property") you will have to pay the capital gains tax, which for all practical purposes has now been reduced to 15 percent of profit you have made.

However, there are some creative ways in which to defer -- not avoid -- having to immediately pay any such tax. One such technique is known as a Starker (or "deferred") Exchange, named after Mr. Starker who defeated the Internal Revenue Service, although he had to go all the way to the Supreme Court to win his case. Read More
 

Many Options For Selling Rental Property
Congress just gave you a present. For sales which took place after May 6, 2003, the capital gains tax rate has been reduced from 20 percent down to 15 percent. For taxpayers in the lower brackets of 10 or 15 percent, the tax will only be five percent of the gain. Read More

1031 Tax-Deferred Exchanges
Evolving Rules, Greater Opportunities

Real estate investing is similar to playing Monopoly. Winning at either takes savvy and the skill to negotiate the exchange of less desirable properties for more valuable ones. Read More

IRS Information

Like-Kind Exchanges - Real Estate Tax Tips

Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized. Read More

Publication 544 Sales and Other Dispositions of Assets